New Zealand told to ban imports of fossil fuel vehicles

Market: Oil products
02/02/21

The New Zealand government has been told it needs to do more to achieve its greenhouse gas (GHG) emissions reduction targets, with a recommendation to ban the import of gasoline- and diesel-fuelled cars between 2030-35 and switch to electric vehicles (EVs).

The government must pick up the pace, and it will not meet its targets without strong and decisive action now to drive low-emissions technology and behaviour change across all sectors, the country's Climate Change Commission (CCC) said. The CCC was created in 2019 with the passage of the zero-carbon legislation in 2019 to commit the country to net-zero GHG emissions by 2050.

Priority areas for action include increasing the number of EVs on New Zealand's roads, the CCC said. Transport emissions in 2018 made up 36.3pc of total net GHGs of 45.7mn t of carbon dioxide equivalent (CO2e). New Zealand's gross GHG emissions in 2018 were 78.9mn t of CO2e, with the difference between net and gross GHGs reflecting the removal of emissions through forestry.

"We want to see the majority of the vehicles coming into New Zealand for everyday use electric by 2035. The government will need to provide support and incentives to make this happen," the CCC said.

New Zealand has no domestic auto production industry. Its oil product consumption was 130,000 b/d in the July-September quarter last year, according to government data. The country's sole refinery, the 135,000 b/d Marsden Point, is currently considering converting to a product terminal.

Heat, industry and electricity emissions made up 41pc of total GHGs in 2018 or around 18.8mn t of CO2e, the CCC report said. Low and medium temperature heat in industry and buildings could be decarbonised by 2050 through a switch away from coal, diesel and gas to electricity and biomass. The CCC's analysis indicates that these costs could range up to NZ$250/t ($180/t) of CO2e reduced.

Emissions from international aviation and shipping are not currently part of the 2050 emissions reduction target for New Zealand. The CCC will review whether these should be included in the 2050 target in 2024.

"We have tested to make sure that our path could allow New Zealand to meet the 2050 net-zero long-lived gas emissions target including international aviation and shipping emissions in case a decision is made in future to include these in the 2050 target," it said.

The New Zealand government plans to strengthen its nationally determined contribution to meet its obligations under the 2015 Paris climate agreement, said New Zealand prime minister Jacinda Ardern. New Zealand currently plans to reduce GHGs by 30pc by 2030 from 2005 gross levels of around 80mn t of CO2e.

The draft CCC advice is open for consultation until 14 March and the final advice will be released before 31 May, said New Zealand climate change minister James Shaw. The government will respond with an emissions reduction plan before the end of the year.

By Kevin Morrison

Emissions budget recommendations for New Zealand government			(CO2e/yr)
	Emissions budget 1 (2022-25)	Emissions budget 2 (2026-30)	Emissions budget 3 (2031-35)

Annual average	68	57	45
Source: CCC

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19/12/24

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19/12/24

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19/12/24

Viewpoint: Politics, economy key to bitumen recovery

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19/12/24

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19/12/24

Reliability drives New Zealand power mix: Minister

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US Army Corps proposes new Illinois River lock

18/12/24

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18/12/24

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